What is Inland Marine Insurance?

Inland marine insurance is a type of transit insurance that covers valuable goods while they are moving over land or stored away from your main location. 

Despite its name, this insurance has little to do with the sea. It evolved from traditional marine insurance and now covers a wide range of movable assets transported by trucks, trains, or even during their off-site storage.

This type of insurance is essential for businesses that rely on transportation of valuable assets such as machinery, electronics, or fine arts. It ensures that these movable assets remain protected against theft, fire, natural disasters, or damage during transit or temporary storage. 

Why Is Inland Marine Insurance Important?

If a shipment gets damaged or stolen during transit, the financial loss could be devastating. Standard property insurance typically covers assets only at fixed locations. It leaves a gap when goods are on the move. Inland marine insurance fills this gap by offering protection during the entire journey and even while the goods are temporarily stored away from the owner’s primary location.

For Indian businesses involved in logistics, construction, manufacturing, or even art dealing, inland marine insurance offers peace of mind. It safeguards their investments and helps them continue operations without major financial setbacks caused by unforeseen incidents.

What Does Inland Marine Insurance Cover?

• Goods in Transit: It protects against loss or damage to goods while they are transported by road, rail, or air within India.
• Installation Coverage: It covers equipment or machinery during transit and while being installed at the client’s location.
• Equipment Coverage: It coverage for tools, machinery, and equipment used at multiple job sites or stored away from the main business premises.
• Builder’s Risk: It covers materials, equipment, and fixtures used in construction projects, as well as during transit to and from the construction site.
• Fine Arts and Exhibitions: Protection for valuable artworks or exhibition items during transit or while on display.

Please note: Inland marine insurance policies are flexible and can be customised to cover a variety of risks and property types. 

Benefits of Inland Marine Insurance

• Comprehensive Protection: It covers goods and equipment beyond fixed locations, including transit and temporary storage.
• Financial Security: It helps businesses avoid heavy losses from theft, damage, or accidents during transportation.
• Customisable Policies: It allows coverage tailored to specific industries and types of movable property.
• Complementary Coverage: It works alongside marine and cargo insurance for end-to-end protection of goods.
• Peace of Mind: It enables businesses to focus on operations without worrying about transit risks.

Please Note: Inland marine insurance complements marine and cargo insurance. It offers seamless end-to-end protection for goods during land transit and storage. Businesses can ensure comprehensive coverage for their movable assets throughout the entire supply chain journey.

How Does Inland Marine Insurance Work in India?

In India, inland marine insurance is governed by the broader marine insurance regulations and is offered by leading insurers like TATA AIG. Businesses get the option to customise these policies to meet the specific needs, considering the country’s diverse geography and transportation challenges.

When purchasing inland marine insurance, policyholders must clearly specify the type of goods, transit routes, and storage locations. The insurer assesses the risks and provides coverage accordingly. 

In case of loss or damage, the policyholder files a claim with supporting documents like bills of lading, invoices, and proof of loss. The insurer then evaluates the claim and compensates the insured for the covered losses.

Who Should Consider Inland Marine Insurance?

• Manufacturers and Traders: Those who frequently transport goods between warehouses, factories, or customers.
• Construction Companies: Those who move expensive machinery and materials to various project sites.
• Logistics and Freight Companies: Handling the transportation of goods across India.
• Art Dealers and Exhibitors: Those who require coverage for valuable artworks during transit or exhibitions.
• Service Providers: Medical equipment suppliers or technology firms that transport specialised equipment to client locations.

How Does Inland Marine Insurance Differ From Marine Insurance and Cargo Insurance?

Aspect	Inland Marine Insurance	Marine Insurance	Cargo Insurance
Coverage Area	Covers goods and equipment transported over land within a country, including temporary storage.	Covers ships, freight, cargo, and liabilities during sea and inland waterway transit.	Protects goods during transit by sea, air, rail, or land globally.
Scope of Protection	Protects movable property like construction equipment, tools, and goods in domestic transit.	Includes hull (vessel), freight, liability, and cargo insurance related to maritime operations.	Focuses specifically on loss or damage to cargo during transportation.
Risks Covered	Theft, damage, accidents, vandalism during land transit or temporary storage.	Maritime perils such as shipwrecks, piracy, collisions, and environmental liabilities.	Theft, damage, or loss of goods during loading, unloading, and transit by any mode.
Relation	A subset of marine insurance focused on inland transport risks.	It is the broadest category covering all marine-related insurance.	A subcategory of marine insurance focusing solely on cargo protection.

Conclusion

Inland marine insurance is a vital yet often overlooked form of coverage that protects movable property during transit and storage on land. For Indian businesses involved in manufacturing, construction, logistics, or art dealing, it offers essential financial protection against risks that standard property insurance does not cover.

If you deal with movable or high-value property, consider inland marine insurance as a critical part of your risk management strategy.